Joint Trusts – A Great Planning Opportunity for Non-Traditional Couples and Blended Families
Creating an estate plan for clients who are in non-traditional relationships or are part of a blended family can be very tricky. Why is Estate Planning for Non-Traditional Couples So Tricky? Let’s assume a hypothetical fact situation where you have a women (Jane) with $4M in assets. She is a widow and has 2 children. […]
Understanding the Differences Between Special Needs Trusts and Supplemental Needs Trusts
“Special Needs Trusts” and “Supplemental Needs Trusts” are terms to describe trusts designed to provide benefits to a person in a way that will preserve the public benefits that he or she is entitled to receive. These types of trusts are most commonly created when a person has some sort of special needs or disability. […]
The Best Place To Die (From An Estate And Inheritance Tax Perspective)
Best place to die Several years ago, I wrote a few articles comparing the tax consequences of dying in New Jersey, New York, Pennsylvania and Florida. Now that New Jersey has amended its estate tax laws, I thought I should write another post for 2017 regarding the best place to die. I will write this […]
Income Taxation of Trusts – Determining Which State Can Tax the Trust
Determining the situs of a trust (i.e. the residence of a trust) is not always an easy matter. Each state has its own rules regarding whether a trust is a “Resident Trust”. These rules are oftentimes different from the tax rules. In some states these rules have been challenged in Court as unconstitutional, where the […]
Reasons to Value a Trust
Recently I gave a lecture on the valuation of trusts. While I am not an accountant nor am I a valuation expert, I live and breathe trusts… and frequently the question comes up, what is value of a particular beneficiary’s interest in a trust. Keep in mind, just because a trust is worth $1M, it […]
Change in Pennsylvania Power of Attorney Law
Happy New Year! Effective January 1, 2015, under Act 95, Pennsylvania modified Chapter 56 of Title 20 of the Pennsylvania Consolidated Statutes, which deals with Powers of Attorney. The amendment was made to try to better protect the Grantor of the powers. Under the new statute, a Pennsylvania Power of Attorney must be witnessed by […]
Non Residents of Pennsylvania Can Be Subject to Pennsylvania Inheritance Tax
I frequently get calls from individuals who had a relative pass away with property located in Pennsylvania. Even though the decedent lived somewhere besides Pennsylvania, you should be aware that Pennsylvania reserves the right to tax this property on the death of the owner via an inheritance tax. This tax will apply whether the decedeånt […]
Pennsylvania Same Sex Married Couples No Longer Have to Pay Inheritance Tax
On May 20, 2014, declared that Pennsylvania’s laws banning same sex marriage was unconstitutional. Besides the practical implication that same sex couples in Pennsylvania may now get married, it also means that when one spouse dies, the survivor can now inherit tax free. Previously, only a heterosexual surviving spouse could inherit assets of the deceased spouse […]
Pennsylvania Makes Significant Changes to Inheritance Tax Law
On July 9, 2013, Pennsylvania enacted new legislation that made significant changes to their inheritance tax law by exempting the transfer of small family owned businesses. (H.B. 465) A qualified family-owned business is defined as a proprietorship or entity with fewer than 50 full time employees and assets less than $5,000,000 at the decedent’s death. […]